Taxes on Income (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Income Before Taxes from Domestic and Foreign Operations

Income before taxes on income resulting from domestic and foreign operations is as follows:


(in millions)	Year Ended December 31,
	2025		2024		2023
Domestic operations	$	3,356	$	3,436	$	1,899
Foreign operations	2,871		1,872		1,772
Total income before taxes	$	6,227	$	5,308	$	3,671

Schedule of Provision for Taxes on Income

The provision for taxes on income consists of the following:


(in millions)	Year Ended December 31,
	2025		2024		2023
Federal:
Current	$	909	$	740	$	559
Deferred	(110)		(131)		(177)
Total federal	799		609		382
Foreign:
Current	448		472		370
Deferred	(52)		(161)		(150)
Total foreign	396		311		220
State and local:
Current	292		252		216
Deferred	(80)		(31)		(40)
Total state and local	212		221		176
Total provision for taxes	$	1,407	$	1,141	$	778

Schedule of Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate

A reconciliation of the U.S. federal statutory income tax amount and rate to our effective income tax amount and rate for financial reporting purposes for the year ended December 31, 2025 is as follows:


(in millions)	Year Ended December 31,
	2025
	Amount		Percent
U.S. Federal Statutory Income Tax Rate	$	1,308	21.0	%
State & local income taxes, net of federal income tax 1	129		2.1
Foreign tax effects
United Kingdom	(66)		(1.1)
Malta
Statutory tax rate differential	113		1.8
Nontaxable income	(269)		(4.3)
Other foreign jurisdictions	48		0.8
Effects of cross-border tax laws
Subpart F income	190		3.0
Foreign derived intangible income	(68)		(1.1)
Other	86		1.3
Tax credits	(24)		(0.4)
Changes in valuation allowances	5		0.1
Nontaxable or nondeductible items	23		0.4
Changes in unrecognized tax benefits	(7)		(0.1)
Other adjustments
S&P Dow Jones Indices LLC joint venture	(65)		(1.0)
Other	4		0.1
Effective income tax rate	$	1,407	22.6	%

1 State and local taxes in New York, California and Virginia make up the majority of the tax effect in this category.

A reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate for financial reporting purposes for the year ended December 31, 2024 and 2023, in accordance with the guidance prior to the adoption of ASU 2023-09, is as follows:


(in millions)	Year Ended December 31,
		2024		2023
U.S. federal statutory income tax rate		21.0	%	21.0	%
State and local income taxes		3.5		3.5
Foreign operations		(4.7)		(5.1)
Stock-based compensation		(0.3)		(0.4)
S&P Dow Jones Indices LLC joint venture		(1.1)		(1.5)
Tax credits and incentives		(0.8)		(2.5)
Divestitures		0.1		1.8
Other, net		3.8		4.4


Effective income tax rate		21.5	%	21.2	%

Schedule of Net Income Tax Payments

Net income tax payments for the year ended December 31, 2025 consisted of the following:


(in millions)	Year ended December 31,
	2025
Federal	$	722
State	187
Foreign
United Kingdom	170
Germany	105
Other	318
Total	$	1,502

Schedule of Differences Between the Accounting for Income and Expenses for Financial Reporting and Income Tax

Significant components of the Company’s deferred tax assets and liabilities consisted of the following:


(in millions)	December 31,
	2025		2024
Deferred tax assets:
Accrued expenses	$	128	$	114
Losses and other carryforwards	636		695
Research & Development Expenditures	420		350
Other	434		423
Total deferred tax assets	1,618		1,582
Deferred tax liabilities:
Goodwill and intangible assets	(4,321)		(4,348)
Other	(186)		(245)
Total deferred tax liabilities	(4,507)		(4,593)
Net deferred income tax asset before valuation allowance	(2,889)		(3,011)
Valuation allowance	(302)		(313)
Net deferred income tax liability	$	(3,191)	$	(3,324)
Reported as:
Non-current deferred tax assets	$	71	$	73
Non-current deferred tax liabilities	(3,262)		(3,397)
Net deferred income tax liability	$	(3,191)	$	(3,324)

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


(in millions)	Year ended December 31,
	2025		2024		2023
Balance at beginning of year	$	325	$	230	$	223
Additions based on tax positions related to the current year	41		76		21
Additions for tax positions of prior years	24		48		10
Reduction for tax positions of prior years	(13)		—		—
Reduction for settlements	—		(11)		(11)
Expiration of applicable statutes of limitations	(55)		(18)		(13)
Balance at end of year	$	322	$	325	$	230